MBIA Crash & Burn

Just when you thought it couldn't get worse at MBIA, it gets worse. After losing half its market cap in the past few months, MBIA looked to many like a good buy. There are a lot fewer members of that club of "many" today. Shares are down nearly 9% right now, apparently on word of a negative report from Moody's. Moody is saying: "with regard to MBIA, additional analysis of its direct RMBS portfolio leads Moody's to believe the guarantor is at greater risk of exhibiting a capital shortfall than previously communicated; we now consider this somewhat likely."